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As the rental market continues to grow, it’s crucial for both landlords and tenants to understand the importance of conducting proper entry and exit inspections.
That’s the word from Andrew Schaefer, MD of leading property management company Trafalgar, who says that all too often, inspections are regarded as mere tick-box exercises – or neglected altogether.
“But they should actually be taken very seriously because they play a vital role in maintaining transparency between landlords and tenants, preventing disputes, and protecting the rights and financial interests of both parties.”
The following, he says, are the most important things to know about ingoing and outgoing inspections:
1. Timing: According to the Rental Housing Act, a joint inspection should take place before a tenant takes occupancy and within three days of their departure. Ideally, these inspections should be conducted when the property is vacant, allowing both parties to accurately assess its condition without obstructions.
2. Attendance: Joint inspections by the tenant and either the landlord or his agent are essential for clear communication and accountability. If a landlord (or agent) does not attend the inspection with the tenant before occupancy, they lose the right to hold the tenant responsible for any property damage that may be present. Conversely, if a tenant fails to participate in a joint inspection upon moving in or out, they may be held accountable for any subsequent damages.
“In short, both parties need to attend and participate in inspections to avoid possible future disputes, especially over damage deposits.”
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3. Responsibility for repairs: Landlords are obliged to supply the tenant with a property that is liveable (habitable) but not legally obliged to repair minor damages such as faded varnish, chipped paint, cracked tiles or loose skirtings before the tenant moves in, unless this has been agreed upfront.
“However, these things should be noted in the entry inspection report so that they do not become an issue later.”
4. What to inspect: During entry and exit inspections, tenants and landlords should review the property thoroughly. Items to check include plumbing, electrical systems, ventilation, security features, doors, windows, and any included appliances such as stoves or fridges to make sure they are working. Outdoor areas like pools and gardens should also be reviewed and any issues accurately noted. Dated photographs (preferably digital) should be taken of every room and/ or area of concern or particular interest.
“At Trafalgar, we use an electronic device (phone or tablet) and an automated checklist that covers all aspects of a property and includes detailed photographs recording condition. This ensures that nothing is omitted and provides a comprehensive factual record of the state of the property. It also enables us to generate entry and exit inspection reports that compare like with like and provide side-by-side photographic comparisons for convenience.”
5. Inspection reports: The entry inspection report and photographs must be attached to the lease agreement, as stipulated by Section 5(7) of the Rental Housing Act. Additionally, a mandatory disclosure document listing any known defects should be provided by the landlord. These records will help to ensure a transparent agreement and serve as valuable references in case of any later disagreement.
“At Trafalgar, we also provide tenants with another copy of the ingoing inspection record two weeks before they are due to vacate a property at the end of their lease. This gives them enough time to compare the current condition to the initial inspection report and correct or repair anything damaged during their occupancy prior to the outgoing inspection.
“This speeds up the outgoing process and deposit refunds – and generally ensures that the unit will be in a suitable condition for any new tenant taking occupation.”
6. Digital records: Providing documents in print form is not ideal because one is unable to zoom into photographs, and storage can also be problematic. It is usually best to provide the report and photographs via email. In addition, digital storage is more secure in terms of legislation regarding the privacy of private information.